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Paladinen [302]
3 years ago
7

The Federal Reserve Board, under the direction of Janet Yellen, is keeping interest rates at amazingly low levels. What are the

benefits and consequences of taking on such action? Include in your answer issues as interest rate stimulus, inflation, money supply. Finally, state your opinion of whether Janet Yellen is correct.
Business
1 answer:
lord [1]3 years ago
8 0

Answer:

Yes, Janet Yellen is correct to keep interest rates at amazingly low levels at the Federal Reserve Board.

Explanation:

The federal reserve board was established to help stabilize the financial system and one of the ways to achieve stability is through monetary policy.

The following are the benefits of keeping interest rates low at the federal reserve board

  1. Keeping interest rates helps recapitalize the banking system by encouraging deposits.
  2. Low interest rates increases money supply available for spending thereby stimulating the economic activity in the country positively
  3. low interest rates increases employment opportunities by making good credits available to businesses.
  4. Business competitiveness helps stabilize the economy and guard against cost push inflation.

You might be interested in
(a) A local bookseller is considering expanding store space to increase his capacity for books.
Ksju [112]

The book seller should invest in the extra space.

<u>Explanation:</u>

As per the given data:

rent for the additional space given is $300 per year, the additional profit that will be pulled by adding on the space = $4000 per year, the current rate of interest given is = 12%

In order to calculate about the decision, the present values needs to be calculated first

The present value of the investment = (- $ 3000 plus $ 4000) by 1.121

The present value of the investment = $ 571.43

The present value of the investment is positve, hence the book seller should invest in the extra space.

8 0
3 years ago
Calculate the total productivity measure for this company for both years. ( Round your answer to 2 decimal places.) Calculate th
umka2103 [35]

Answer:

Explanation:

As the question was missing data, I have done a quick google search and found the question which I am uploading it here as an image.

<h2>DATA:</h2><h2 /><h3>Last Year:</h3>

      Labor Input = $30,100

      Raw Materials Input = $35,100

      Energy Input = $5010

      Capital Input = $50,010

      Other Input = $2010

      Sales Output = $200,100

<h3 /><h3>This Year:</h3>

      Labor Input = $40,100

      Raw Materials Input = $45,100

      Energy Input = $6050

      Capital Input = $49,750

      Other Input = $2875

      Sales Output = $202,100

<h2>FORMULA:</h2>

Productivity = Output / Input

<h2>CALCULATION:</h2>

Total Input of Last Year =

                             $ (30,100 + 35,100 + 5010 + 50,010 + 2010) = $122,230

Total Input of This Year =

                             $ (40,100 + 45,100 + 6050 + 49,750 + 2875) = $143,875

<h3>TOTAL PRODUCTIVITY:</h3><h3 />

                                               Last Year                                 This Year

Output in ($)                         $200100                                 $202100

Input in ($)                              $122230                                 $143875

Total Productivity      200100 / 122230 = 1.64          202100 / 143875 = 1.40

<h3></h3><h3>PARTIAL PRODUCTIVITY:</h3><h3></h3><h3>Last Year:</h3>

Partial Productivity Labor = 200100 / 30100 = 6.65

Partial Productivity Capital = 200100 / 50010 = 4.00

Partial Productivity Raw Materials = 200100 / 35100 = 5.70

<h3>This Year:</h3>

Partial Productivity Labor = 202100 / 40100 = 5.04

Partial Productivity Capital = 202100 / 49750 = 4.06

Partial Productivity Raw Materials = 202100 / 45100 = 4.48

3 0
3 years ago
Cordell Inc. experienced the following events in Year 1, its first year of operation: Received $59,000 cash from the issue of co
faltersainse [42]

Answer:

a & c. See part a & c of the attached excel file for the table. In the attached excel file, Total revenue = $100,000; and Total expenses = $61,900.

b. The amount of net income reported on the 2018 income statement is $38,100.

d. The amount of cash flow from operating activities reported on the 2018 statement of cash flows is $25,000.

e. Before closing balance in service revenue account = $100,000; and After closing balance = $0.

f. The balance of the retained earnings account that appears on the 2018 balance sheet is $32,200.

Explanation:

a. & c. Identify the events that result in revenue or expense recognition and those which affect the statement of cash flows. In the Statement of Cash Flows column, use OA to designate operating activity, FA for financing activity, IA for investing activity and NA to indicate the element is not affected by the event.

Note: See part a & c of the attached excel file for the table.

From the attached excel file, we have:

Total revenue = $100,000

Total expenses = $61,900

b. Based on your response to Requirement a, determine the amount of net income reported on the 2018 income statement.

Based on part a & c above, we can determine this as follows:

Net income = Total revenue - Total expenses = $100,000 - $61,900 = $38,100

Therefore, the amount of net income reported on the 2018 income statement is $38,100.

d. Based on your response to Requirement c, determine the amount of cash flow from operating activities reported on the 2018 statement of cash flows.

Note: See part d of the attached excel file for the amount of cash flow from operating activities.

From the attached excel file, we have:

Cash flow from operating activity = $25,000

Therefore, the amount of cash flow from operating activities reported on the 2018 statement of cash flows is $25,000.

e. What is the before- and after-closing balance in the service revenue account?

Before closing balance in service revenue account = Services performed on account + Services performed for cash = $81,000 + $19,000 = $100,000

After closing balance = $0

The "after closing balance" is equal to zero because, at the end of a particular period, the balance of the service revenue account turns to $0 when the firm has to close the balance of the service revenue account in the retained earnings.

f. What is the balance of the retained earnings account that appears on the 2018 balance sheet?

Retained earnings = Net income - Cash dividend paid to the stockholders = $38,100 - $5,900 = $32,200

Therefore, the balance of the retained earnings account that appears on the 2018 balance sheet is $32,200.

Download xlsx
6 0
3 years ago
Loger's, a high-end apparel company in Bruslon, an Asian country, cuts back on production as consumers start turning to basic pr
eimsori [14]

Answer:

d. economic contraction

Explanation:

Contraction is in economics means it is business cycle phase where the overall economu should be fall. Also the contraction should arise when the cycle of the business is in peak but it should be prior to became as a trough

So at the time of economic contraction, the company normally took the measures of the cost cutting

So as per the given situation, the option d is correct

3 0
3 years ago
Which act requires that financial institutions must provide a privacy notice to each consumer that explains what data about the
Yakvenalex [24]

Answer:

Gramm–Leach–Bliley Act

Explanation:

The Gramm–Leach–Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999, (enacted November 12, 1999) is an act of the 106th United States Congress (1999–2001). It repealed part of the Glass–Steagall Act of 1933, removing barriers in the market among banking companies, securities companies and insurance companies that prohibited any one institution from acting as any combination of an investment bank, a commercial bank, and an insurance company. With the bipartisan passage of the Gramm–Leach–Bliley Act, commercial banks, investment banks, securities firms, and insurance companies were allowed to consolidate. Furthermore, it failed to give to the SEC or any other financial regulatory agency the authority to regulate large investment bank holding companies. The legislation was signed into law by President Bill Clinton.

5 0
3 years ago
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